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CHB Mail - 2021-07-22

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Omeowners selling see catch

ADVERTORIAL

ute shortage of housing in e’s Bay is putting people off their homes because of the ties they’re having finding er one, real estate agents say. wke’s Bay had the largest the country in the number ses for sale for the year to 243 to 187). It’s the lowest en for the June month for years. e 23 per cent drop recorded Real Estate Institute of NZ ng real-life impact. nz Hawke’s Bay swoman and Ray White e’s Bay director Elanor onald says the region is one of the worst supply and nd issues in NZ. dian house prices increased cent in the region across the o June and Central Hawke’s t a new record median price 5,000. cDonald said Hawke’s Bay onally had a seasonal market, drop in winter, but sales off ck of the Covid-19 lockdown had been bumped up through high buyer interest and sales that had been deferred. Tremains regional manager Stuart Christensen said the previous winter “was like summer every day” as it was not seasonally impacted because of the boom after lockdown. MacDonald said the drop down this year could be partly explained by a “bit of a knee- jerk reaction” to the Government’s housing package announced in March which included changes for property investors and first homebuyers, and commentary following this around house prices dropping and interest rates rising. She said investors in Hawke’s Bay weren’t selling any of their portfolios and Christensen said part of the lack of supply was because investors were still “taking stock” of the Government’s housing changes. The other contributing factor was the uncertainty of where people could buy if they did sell, he said. Some sellers are making sales subject to them finding something or they are looking at a long settlement period. MacDonald said they were seeing more vendor purchase clauses than ever. “There is certainly a reasonably sized pool of people that if they could buy the house that they actually wanted, their house would be sold.” When it came to house prices, compared to other areas of New Zealand, Hawke’s Bay “had a little bit of catch-up to do” in the past 10 years, which had been happening in the past three years, she said. “After the GFC [Global Financial Crisis] we saw an initial drop off, then quite a long period of very slow growth, whereas Auckland and some of the other centres were really pumping along at a higher level.” MacDonald felt it could prove to be a challenging winter for sales, but said there were hopes that spring could bring a turnaround.

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